Three Small Business Grants You Can Apply For

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You may not know it, but if you are based in the United Kingdom there are several funding options available for businesses, many of which were made available as a direct result of the pandemic.

While many are loan facilities such as the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS), there are three grants you should know about.

What Are Grants?

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Grants are sums of money given by the government or a public body for a particular purpose and unlike loans, are not liabilities to be repaid.

There are eligibility criteria to meet, and bodies which provide funding through grants will usually specify what the money should be spent on.

Are There Problems Accessing Grants?

Especially for small and medium-sized enterprises there is a surprising amount of this kind of funding support available, but the challenge with gaining access is two-fold:

  • There is limited knowledge about their existence. They either tend not to be widely publicised, or there is a lack of adequate explanation about the nature of the funding and how it works. This is unfortunate, as businesses which desperately need the lifeline don’t get the opportunity to apply for it, as has been the case since the end of August . Schemes such as the Small Business Grant Fund (SBGF) and Retail, Hospitality and Leisure Grant Fund (RHLGF) were announced to provide relief to businesses as a result of the pandemic, but were ended a few months later without an estimated 2 in 5 eligible businesses applying.
  • When researching available grants, it is rare to find relevant information that is up-to-date and collated in one location in a way that is easy to read and assess.

What Small Business Grants Can You Apply For?

That being the case, here are three Small Business grants you can apply for right now:

1. THE EUROPEAN REGIONAL DEVELOPMENT FUND (ERDF) PROGRAMME

This was announced by the Minister for Regional Growth and Local Government in July, and consists of £20 million of new government funding to help smaller businesses recover from the effects of the pandemic.

Who Is It For?

Grants from this fund are for small and medium-sized businesses.

What Is The Grant Amount?

It is a one-off cash amount of between £1,000 and £5,000.

Who Distributes The Grant?

The grant is distributed by Growth Hubs, which bring together the best of public and private sector partners to promote, co-ordinate and deliver business support based on local needs. They are embedded in local areas across England.

Who Is Eligible?

Your business qualifies for this grant if it is based in England.

How Can You Make a Claim?

Locate and contact your local area Growth Hub.

2. THE KICKSTART SCHEME

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This was announced by the Chancellor of the Exchequer in July, and consists of £2 billion in funding to create more jobs for young people between the ages of 16 and 24.

Who Is It For?

Grants from this fund are available to businesses of any size to create new job placements and support young people on Universal Credit or at risk of long-term unemployment.

What Is The Grant Amount?

Funding is available for the National Minimum Wage for each role, and there is also £1,500 available for each job placement to set up support and training.

Who Distributes The Grant?

The grant is distributed by central government.

Who Is Eligible?

Your business qualifies for this grant if:

  • It is based in England.
  • The job placements are for new roles.
  • The roles are for a minimum of 25 hours a week and will last a minimum duration of 6 months.
  • At the very least, successful candidates will be paid the Minimum Wage for their age group.

How Can You Make a Claim?

  • If your application is for 30 or more job placements, complete your application online.
  • If your application is for less than 30 job placements, you’ll have to partner with other organisations to have a minimum of 30 placements. You can either find a representative to help you do this by getting in touch with your local Kickstart Scheme employer contact, or become a representative of a group of employers yourself.

What Else Do I Need To Know?

You’ll need the following details to complete your application:

  • The Companies House reference number.
  • The business address and contact details.
  • Details of the Kickstart scheme job placements and their location.
  • Supporting information to confirm the placements meet the criteria of the scheme.
  • Details of how the business can develop the employability skills of young people.

Once your submitted application is checked to make sure it meets the criteria, it will be reviewed by a panel. Current government estimates are that applications should be responded to within one month.

3. LOCAL LOCKDOWN GRANTS

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To avoid a second wave and the need for another national lockdown, the government strategy to contain the spread of coronavirus now involves implementing restrictions on a local and regional basis.

Since many businesses caught up in these local lockdowns will see their revenue-generating activities halted, the Treasury has announced new funding to support and protect them.

Who Is It For?

Grants from this fund are for businesses forced to close as a result of local lockdowns or targeted restrictions.

What Is The Grant Amount?

Larger businesses will receive £1,500 every three weeks for the duration of any such closure. Smaller businesses will receive £1,000.

Who Distributes The Grant?

The grant is distributed by local authorities.

Who Is Eligible?

Your business qualifies for this grant if:

  • It is based in England.
  • Occupies a property or part pf a with a rateable value, annual rent or mortgage less than £51,000 (this qualifies for the £1,000 payment).
  • Occupies a property or part pf a property with a rateable value, annual rent or mortgage of £51,000 or more (this qualifies for the £1,500 payment).
  • Local authorities will also receive an additional 5% top up amount to enable them to help other businesses affected by closures which may not be on the business rates list. Payments made to businesses from this discretionary fund can be any amount up to £,1500, and may be less than £1,000 in some cases.

How Can You Make a Claim?

Contact your local authority.

What Else Do I Need To Know?

If you make a profit, you will be liable to pay tax on it.

What Are Your Next Steps?

If you think your business qualifies for one of these grants, speak to your accountant in the first instance to clarify details such as tax implications before completing and submitting an application.